Hong Kong insurance sector to benefit from Greater Bay Area plan

Hong Kong and other cities part of the Chinese government’s proposed Greater Bay Area could receive boosts to their insurance and other financial industries once the plan is enacted.

The plan involves 11 cities in Southern China becoming a mega zone that rivals Silicon Valley in the US, the South China Morning Post reported. The region aims to have an economic system largely driven by innovation by 2035.

The 11 cities are located in the Pearl River delta in Guangdong Province, and are within two hours’ travel by land from Hong Kong. These are Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Dongguan, Huizhou, Zhongshan, Foshan, Zhaoqing, and Jiangmen.

According to the report, the insurance sector will greatly benefit from the formation of the new economic hub because it will enable more cross-border insurance policy sales, claims and investigations. The plan will also encourage insurance companies in Hong Kong, Macau, and Guangdong to jointly develop cross-boundary car and medical insurance products, which allows policyholders in both markets to buy products and make claims with ease.

Meanwhile, Shenzhen will be developed as a pilot zone for insurance innovation, and its linkage with the Hong Kong financial market will be strengthened. Macau and Shenzhen will also cooperate further to develop special financial products and launch pilot fintech projects.

“[The Greater Bay Area plan] will deepen cooperation among the insurance sectors in Guangdong, Hong Kong and Macau, better coordinate the movement of people, goods and capital in the region, and promote closer regional economic collaboration,” said Moses Cheng, chairman of Hong Kong’s Insurance Authority.

“Hong Kong’s insurance products will be highly competitive in the markets of the Greater Bay Area. Leveraging the advantages of Hong Kong’s insurance industry will not only help further the development of the Guangdong-Hong Kong-Macau Greater Bay Area, but also open new horizons and bring new momentum to the sustainable development of the industry, bolstering Hong Kong’s role as a risk management centre.”